British govt puts 150 mln stg in venture fund

* Plans Europe's largest venture capital fund at 1 bln stg

* Sees strong support from private sector investors

* Manager appointment, first close due next month

By Simon Meads

LONDON, Nov 27 (Reuters) - The government on Friday pledged 150 million pounds ($246 million) to a new venture capital fund, planned as Europe's largest, as it looks to kick start British technology investment and the ailing business sector.

The government hopes to build up the fund to 1 billion pounds over ten years and has been calling on private sector investors to invest alongside it in the UK Innovation Investment Fund, science and innovation minister Lord Drayson said.

"The fund will be the largest technology venture capital fund raised in Europe and will be able to match the scale of the funds we see being raised in the U.S.," Drayson told Reuters in a telephone interview.

"The UK has a very strong group of technology businesses which require venture capital and we are addressing that today," he added.